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Did you test ride that deluxe? I like softails, had one for 23 yrs now. I rode a friends deluxe and I also found it very uncomfortable. Of course, with enough $$ for changes you could make it what you want but why, instead of just getting what you wanted. It's always a good idea to call a bunch of different dealers and play them against each other.
Seriously? This sounds like self inflicted pain. You bought the wrong bike and want to return it of course the dealer is not going to give you all your money back after you have added miles and admit things are now falling off. The dealer will have to prep the bike, fix it, clean it and resell it. That is why you only got $650 out of it.
Now that we've all played smear the queer, lets re-group and give some advice. OP, please read the book "The Total Money Makeover." If you want to PM me your address, I'll personally send you a copy. Honesty.